BIAL in dire straits, revenue down 75%: CEO Hari Marar

Hit hard by Covid-linked flight disruptions, the Bangalore International Airport Limited (BIAL) has seen its revenues tumble.

In an exclusive interview, BIAL President and CEO Hari Marar explains how this will impact the Kempegowda International Airport’s future projects, dwells on the challenges ahead, and more.

Excerpts from the interview:

How has the pandemic affected BIAL’s business and future plans?

Airport revenues in April, May, and June were practically wiped out. Pre-Covid, we handled roughly three million passengers a month. Over the last six months, the total passenger number has not crossed 2.5 million as against the normal of 18 million.

Our revenues are completely dependent on user fees, parking charges, and non-aeronautical revenues on traffic. Overall, the revenues are down by about 75%. We are in a very tight position. As a company, we are in dire straits. We need financial support.

The Terminal-2 project will now be delayed. How will this impact the airport’s passenger capacity in the future?

This year, we are likely to record only about eight million passengers, compared to 33 million last year. So there is no hurry for T2. But we have taken loans and mobilised workers. We will go ahead with the project. However, we will not put money to accelerate the project.

Based on what we have seen so far, it looks like all projects will be completed by March 2022. These include expansion of the Trumpet Flyover, the main access road, water treatment plants, and landscaping.

How will the parking-to-boarding safety protocol at KIA be scaled up once international flights resume operations fully? What are the challenges?

Most of the protocols in place are digital in nature. Maintaining social distancing might become a challenge. But we are hoping that a vaccine will be available by the first quarter of next year. However, we don’t see traffic crossing a point when social distancing becomes a problem.

Today, KIA is India’s third busiest airport. Considering the explosive air traffic growth, will BIAL be open to a second airport as proposed by the Bangalore Chamber of Industry and Commerce (BCIC)?

KIA will have plenty of capacity for the next 15 years. The whole purpose of a second airport is irrelevant. BCIC has not discussed the proposal either with aviation experts or the government. If demand increases in the future, they could start the land acquisition process early, and build only when required.

The railway halt station is nearing completion at KIA. How many airport workers will benefit? Will air passengers also take the train?

From the word go, the station can be used by air passengers, too. We have not defined who will benefit from the facility. We will introduce shuttle bus services with stops for both employees and at the terminals. The service will operate like Vayu Vajra buses. The number of buses will be increased as traffic picks up.

Our request to the Railways is to align the departure and arrival times of trains with the employees’ shift timings. There are about 28,000 employees in the airport campus. The trains stopping at the halt station will have key stops at Yelahanka, Doddajala, and Chikkajala, where many of the employees stay.

How soon can passengers expect to take the airport metro?

The airport metro line is expected to be completed by December 2024. We have requested the BMRCL to start work from the airport side and move towards the city. Tenders have been floated, and work is likely to start from the first quarter of 2021. The entire elevated section within the airport campus will be done by BMRCL.